Investment management and consultancy firm Colliers expects the CREATE MORE bill to improve regulatory stability and transparency by providing clear guidelines on VAT exemptions, zero-rating, and work-from-home arrangements.
CREATE MORE is the acronym used by legislators for the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy. The bill awaits President Ferdinand Marcos Jr.’s signature.
The bill, among others, will lower corporate income tax to 20 percent from 25 percent; grant registered business enterprises with capital stock of over P20 billion zero-rated value added tax on local purchases and VAT exemption on imports and duty-free import of capital equipment, spare parts and raw materials; grant additional 100 percent deduction on power expenses; and cap at 2 percent based on gross income for the so-called Registered Business Enterprise Local Tax to simplify the tax process.
This enhanced clarity is expected to make the Philippines a more attractive destination for business investment, said Kevin Jara, Director of Office Services at Colliers, in an industry update issued on Thursday.
Jara said the proposed 50 percent work-from-home allowance could have significant implications for the office market, especially in the Information Technology-Business Process Management sector.
He said this provision will have an impact on registered business enterprises’ real estate considerations, including reversion to office settings to maintain incentives, increase office space needs to comply with new onsite work requirements, while companies currently registered under the Board of Investments that have no minimum onsite work requirement may need to establish a physical office for half their workforce.
